- LARGEST NEW LEASE IN YEARS
Orlando recorded its first new lease deal above 150,000 SF in three years, as BNY Melon signed for a local relocation into 200,000 SF in Lake Mary, bringing YTD leasing activity to 1.2 MSF.
- FLIGHT TO SUBURBAN QUALITY
Class A assets made up 69.8% of YTD leasing activity as tenants targeted premium Class A space. Suburban markets also made up 86.3% of new deals.
- VACANCY STILL UP
Overall vacancy increased 120 BPS YOY to 14.4%, up 20 BPS from the previous quarter. Several large move-ins projected for the second half of 2023 are likely to bring this value down.
- MODEST RENT GROWTH
Asking rate averages rose 2.9% YOY to $26.46 PSF FSG. Rents in Class A assets closed out the year at $28.60 PSF FSG overall, up 1.6% YOY.
- EMPLOYMENT UP ANNUALLY
Orlando employment grew by 50,300 nonagriculture jobs, or 3.6% YOY. The unemployment rate was 2.6% in May 2023. Office-using employment gained 5,200 new jobs, a 1.3% rise.